Originally the probe focused on Google CEO Eric Schmidt. Now that he has resigned from Apple's board, the probe will focus on former Genentech CEO Arthur Levinson, who also serves on both boards. (Source: Chip Somodevilla/Getty Images)

FTC is convinced that issues may remain

Apple and Google's products overlap in
numerous arenas. Apple offers a browser -- Safari -- as does
Google -- Chrome. Apple has an entry in the phone market -- the
iPhone -- which phones powered by Google's Android OS compete
against. And Google's Doc suite arguably competes with iLife.
Amazingly, until this week, Google's CEO Eric Schmidt saw it fit and
proper to continue
to serve as a member of Apple's Board of Directors, despite such
conflicts of interest typically being deemed illegal and bringing
down the wrath of the U.S. Federal Trade Commission.

Sure
enough, the pair is being investigated
by the FTC. The FTC announced today that it plans to
continue the investigation despite Mr.
Schmidt's resignation from Apple's board. Richard
Feinstein, director of the FTC's bureau of competition did praise the
pair for moving to avoid anticompetitive positions, but says the
investigation has been going on for "some time" and isn't
about to end.

While Mr. Schmidt resigned, former Genentech
CEO Arthur Levinson sits on both boards as well, so issues remain.
States the FTC's Feinstein, "We will continue to investigate
remaining interlocking directorates between the companies."

Consumer
Watchdog, a consumer advocacy group which had attacked Mr. Schmidt
over the conflict of interest, commented, "(W)e're glad Schmidt
finally did the right thing. We call on Levinson to act responsibly
and choose one company or the other. "

A former FTC
antitrust attorney under the Clinton administration, who declined to
be named, says Google is in the FTC's
sights due to its dominant position in the search industry and
that probing is likely to continue. He states, "Google is
in the sights of regulators. This is just the first of many
instances where they are going to encounter regulatory scrutiny.